CDLHT

CDLHT: 1Q14 DPU rose 2.2% y/y to $0.0275, while distributable income rose 3.0% $26.9m. Revenue increased 15.3% $43.8m while NPI rose 4.1% to $36.7m, mainly due to its Maldives resorts, offset by the weaker trading performance of its Australia hotels and partial closure of Mercure Brisbane for refurbishment. CDLHT expects an additional 2000 rooms opening for the rest of 2014 (2013: 3357). This should provide some relief for hoteliers. Events such as World Club 10s Rugby in Jun and WTA Championships in Oct are also expected to buoy hotel demand locally. For Maldives hotel, despite only being 8% of asset value, it contributes 12% and 20% of CDLHT’s 1Q14 NPI and revenue. Maldives continued to register strong visitor arrivals growth of 11.6% y/y for the first 2 months of 2014. Broadly, Maybank KE expects CDLHT to benefit from growing Asian affluence, underpinned by the growth in Chinese outbound travel to Maldives. Maybank KE reiterates Buy with higher TP of $1.91